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Supplier relationships
and servant leadership?
I was asked to help with a problem…
some of our suppliers weren’t
adhering to their contract
ORDER #23
100 PARTS FOR
7AM THE DAY
AFTER
TOMORROW
This supplier is
unreliable; they
are always late
Procurement knew what to do…
change the contracts, add a penalty
clause and enforce
I had a different idea; servant
leadership….
what could we do differently?
We could ask
the supplier to
suggest a
solution
The supplier had some insight to
share…
driver shifts meant they could not
deliver before 8am
A new process was established….
only place orders which ask for
delivery after 8am
ORDER #24
200 PARTS FOR
8AM THE DAY
AFTER
TOMORROW
We should do
more business
with this
supplier; they
are reliable
I was happy; we had avoided
penalties…
and remember suppliers effectively
work on a cost plus mindset
Servant leadership: share power, help
develop high performing partnerships
and reap the benefits of a supplier
that wants to work with you
Penalties or
partnership;
how do you
treat your
suppliers?

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Slideshare 7 supplier relationships